FX reserves fall by $827mn to $14.4bn in a week: SBP

July 28, 2022 (MLN): The total liquid foreign exchange reserves held by the country dropped by $827 million or 5.4% WoW to stand at $14.4 billion during the week ended on July 22, 2022, compared to $15.24bn in the previous week, weekly data released by the State Bank of Pakistan (SBP) on Thursday showed.

The data further revealed that reserves held by the central bank during the week dipped by $754mn or 8.1% WoW to clock in at $8.57bn. Similarly, the reserves of commercial banks went down by $73mn or 1.2% WoW to $5.84bn.

Meanwhile, it is important to note that, the current level of foreign currency reserves is enough to cover 1.22 months of import bill.

On the forex front, the melting foreign exchange reserves in the absence of an IMF tranche, and the political turmoil have forced the Pakistani rupee (PKR) to further lose its ground by 3.9 rupees against the US dollar on Thursday and closed the trade at PKR 239.94.

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